HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 1
Commitment
Hinopak Motors Limited is
committed to respecting
and protecting the dignity
of people in all its areas of
operations. All
stakeholders are assured of
sincere efforts to uplift
conditions with regard to
health and safety, provide
sound labor-management
relations and participate in
human resource/
community development.
Business support and respect the protection of internationally proclaimed human rights.
Policies, Systems, Processes and
Programs
Health and Safety Systems
Actions
Leadership Guidance / Buy-in
Healthy and Safe Work
Environment
Monitoring and Awareness
Performance
• SHE Committee reorganized; surprise safety patrols led by our MD and DMD were seen this reporting year.
• Regular SHE meetings held led by our Management Representative (Director Production) held.
• Personal Protective Equipment (PPEs) required of all persons entering the plants; counseling and warnings given for non-use.
• Infrastructure required for maintaining safe working condition is ensured. Fire hydrant system upgraded and safety hoists
purchased. Corrective measures were taken as required after internal/external audits.
• Work for the improvement and renovation of our Body Operation Plant shop floor housing 800+ personnel at any given day
continued.
• Routine checks of fire/safety exits ensured to ensure safe exits/evacuation. Same checks done through internal/external OHSAS
audits.
• Recreation activities were enhanced; the year saw to three major activities: carrum, table tennis and cricket all participated cross-
functionally.
• External, inter-company sports tournaments/competitions participated by employees.
• Daily morning exercise participated not just by employees but transient stakeholders/visitors.
• Standard temperature (28C) to mitigate negative health impact from fluctuating temperatures continued to be observed.
• Banning of "no smoking" areas/zones being contemplated.
• Enhanced health awareness activities were attended by estimated 1,700 employees from June 2009 to-date. Program included
obesity/BMI checks, Hepatitis awareness, hazards of smoking and eating pan/ghutka, etc. They were followed with check-ups
wherever applicable.
• This year, a crude but effective way to beat the extreme heat in our assembly plant (PTED Section) was through daily mixing ice
blocks with water in our ducting system, resulting to an average of 7~8C improvement in temperature. We also visited similar
plants to benchmark ourselves against their work environment practices. Desert chillers being installed.
• Laboratory check of drinking water at Hinopak conducted by the Aga Khan University Hospital; recent checks in our Assembly
Operation Plant & Head Office in October 2009 and February 2010; Body Operation Plant in May 2010. Tank cleaning performed as
required to ensure safe drinking water for employees/workers.
• Safety patrols were conducted in our plants 198 times (198 days) from August 2009 to May 2010, proving that preventive measures
are of prime importance to us.
• Surveillance audit under OHSAS 18001:2007 in September 2009 was conducted successfully, i.e. compliance with the standards
verified by our external auditors BVQI.
• Accident and incident monitoring system given emphasis towards a safer environment. "Near-miss" incidents tracked, reported and
shared to avoid re-occurrences.
• Daily update, monitoring and maintenance of our Safety Calendar to highlight safety status continues.
• Training-cum-mock drills given to Emergency Response Program (ERP) Teams to check readiness in case of emergencies. ERP
Teams include Rescue, Firefighting, Spill, etc.
• Periodic safety trainings given to employees; safety reminders/guidelines part of our employee orientation program.
• Daily morning safety meetings led by team leaders/executives are conducted at shop floor level, after morning exercises.
• Safety Committee meeting held monthly where identified hazards and countermeasures reviewed / decided.
• Exchange of information on occurrence of fatal/major accidents shared with parent companies; learnings and adoption of new
measures from experiences shared by other Toyota/Hino affiliates called 'yokoten' observed.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 1 Business support and respect the protection of internationally proclaimed human rights.
Commitment Policies, Systems, Processes and
Programs
Total Quality Management
Industrial / Employee Relations
Actions
System Maintenance, Citations
Basic Employee Facilities
Employee Satisfaction
Continuous Improvement
Fair Investigation
Employee Recognition
Security
Performance
• Hinopak' initiatives was cited by the Employers' Federation of Pakistan for its participation in the "Best Practices Award on
Occupational Health, Safety and Environment" organized in April 2010.
• We have maintained our certification in OHSAS 18001 which was the first received (2008) in the industry in Pakistan; both internal
and external audits were successfully conducted this year.
• We were cited for our OHSAS best practices by the Employers' Federation of Pakistan for two consecutive years, 2008 and 2009.
• Hinopak received the UNGC Local Pakistan Network/RBI's "Living the Global Compact" Award for its CSR activities in 11th August
2009 - a formidable feat considering the foreign judges' international CSR exposure.
• 364 hygiene cards of our workers maintained in compliance with Pakistan's Factory Act requirements and ensuring workers' medical
needs are met. June 2009 and January 2010 labor inspections were both satisfactory.
• Extra medical benefit (as special case) was provided to few employees who exceeded their medical allowance this year.
• Subsidized MBA program currently in collaboration with two of Pakistan's premier business schools increased from 13 last year to 29
this year.
• Year-end training hours for our employees reached 75 per permanent/management employee or 45 hours per permanent employee
including apprentices.
• Seven (7) employees were sponsored (USD 2,400/- each) for their religious pilgrimage (Hajj).
• Cash awards and other monetary benefits for 2009 employee performance provided despite the company's financial
constraints/losses.
• Night shift allowance being considered for enhancement due to recent rise in inflation.
• Monthly attendance bonus is given to permanent workers.
• Hinopak employees, permanent and contract (including contractor's) are insured.
• Head Office gym/recreation room was refurbished.
• Leave Fare Assistance continued to be provided as benefit to our employees to allow them an amount for their annual leave.
• Employee feedback sought through "HR visits" of all departments, action plans where possible were embedded in annual HR
objectives.
• Routine benchmarking of our policies and practices against other companies continued, ensuring adoption of best practices
benefitting our employees.
• We monitored and maintained our Quality Management Systems to ensure better working systems and processes for employees,
allowing us certification in the latest version of the ISO 9001:2008 standards.
• Kaizen revival seen this year that also involved non-manufacturing functions; action plans and monitoring participated by top
management. This was complemented by an awareness programs through training of executives and workers.
• Daily, half-hour training at shopfloor conducted through our Quality Assurance Department to educate personnel on process
improvements. Over the 12-month period starting June 2009, 1,388 workers were trained at 570 points, through 241 sessions
resulting to 694 hours.
• A formal Grievance Handling System is being finalized to have a mechanism where both workers' and management employees'
grievances can be aired and resolved. Benchmarking with other MNCs to compare their system conducted. Automation of the
system is underway to ensure proper recording and monitoring of grievances.
• Complying with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, also ensures objectivity in following
the procedures for disciplinary actions against misconduct. Hinopak employees are assured of their rights, fair treatment and the
opportunity to be heard.
• Recognition of employees in punctuality and attendance last year resulted to an improvement of 250%, from 26 to 90 employees
(management and non-management.)
• Retiring employees given farewell parties.
• Wide use and provision of security services to protect our people and properties has been one of our prime responsibilities. This
service extends to the protection of our top management in their residences.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Customer and End-users' Rights / Protection
Stakeholder Participation/Engagement
Employment Policy for Disabled
People
Forcible Displacement
Prevention
Product/Service Quality &
Availability
Supplier/Contractor/Vendor
Rights, Recognition of Human
Rights
Education / Community
Development and Welfare
• Hinopak's foreign visitors are always given extra security advice/travel advisory and support.
• A Security and Communication Team and system are in place to handle emergency and risk situations.
• CCTVs were increased; night watch patrol equipment and walk-through gate in our Body Operation Plant are this year's points for
increased security measures.
• Hinopak is compliant with the Workmen's Compensation Act relating to disability. Workers who could not continue certain job due to
disability met at work are transferred/given alternate job.
• We follow the government directive to meet minimum requirement of employment of disabled persons.
• Hinopak does not have a record of forcible displacement with reference to Standing Order (Ordinance) 1968 of the Labor Laws.
• Product Support network development continued by exploring new or upgrading dealerships to ensure customer support wherever
and whenever required. One dealer upgraded this year.
• Last year's establishment of "Express Maintenance Centre" to enhance our services was further enhanced by this year's schemes
namely "Thunder Service" and "Customer Care Clinic" in coordination with our dealers.
• Customer Satisfaction Index (CSI) Survey was conducted across the country through our Product Support Department to ascertain
customers' feedback to enable us to serve them according to their specific needs.
• We broke into the export market in March 2010 to make our products within the reach of more customers and end-users and
contribute to the improvement of our employees' and other stakeholders' livelihood.
• Our commitment to serve/delight our customers was cited by our parent company, Hino Motors, Ltd., through an 'Excellence Award
in Service Maintenance' in their 2009 Parts & Service Managers Conference.
• Two more Mobile Service Units in our 3-S dealers units were added. This ensures more sophisticated services, repair and
maintenance work on our entire product range at the remotest of locations.
• Operations of our Mobile Training Unit continued, benefiting customers in terms of transportation cost on training, training at their
doorsteps, easy supervision, etc.
• Specific "welfare/environment" clause in our Vendor Evaluation Form only qualifies those who meet requirements on their labour's
safety, working conditions and environment, respect for fundamental human rights and measures for improvements taken.
• While our suppliers/contractors are advised to follow our safety, health and environment requirements, their training is part of our
overall safety program.
• Like employees, contractors' and suppliers' induction into Hinopak is based on transparency and merit.
• Free training given to 676 vendors/vendors' employees (equivalent to est. 2,700 hrs.) through our internal resources/experts in
various areas like 5-S, Inspection Techniques, TQM, TPS, etc., with the objective of helping them achieve improved bottom lines
through effective and efficient operations.
• Hinopak added a duly-registered technical wing to SITE Model School in August 2009, operational exactly one year after its
inauguration in August 2008. First batch of TSC-Part I students have just completed their first year; new intake admission in May
2010. Tools/equipment for TSC Part-II for SITE Model School also supplied by Hinopak this year.
• Over a two-year period since renovation, overall school admission/enrollment improvement seen at more than 100%
• Hinopak's Apprenticeship Program though modest, continues with 19 apprentices. Previous ones already absorbed in our
workforce.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010

Principle 1 Business support and respect the protection of internationally proclaimed human rights.
Commitment Policies, Systems, Processes and Actions Performance
Programs

• More than 1,800 students and teachers have visited Hinopak since June 2009, an increase of 300 compared with the 15-month
figure we reported last year.
• Workers' children to be extended scholarship and books this year.

• We continued disbursement of Hinopak Skill Promotion Scholarship extended to 10 students of Pakistan's renowned engineering
school, producing linkage and therefore, sustainability with regard to our business operations and human resource development
commitment.
• Newly-inducted TSC Part-I students of SITE Model School provided career counseling and additional technical training by our Product
Support Department Training team in November 2009 and January~February 2010.
• Our summer (June 2009) and winter (December 2009) internship program saw to about 92 students getting acclimatized with a
professional environment. Project-based, this program allowed linkage between theory and practice, much appreciated by students
and the educational institutions alike. Currently (June 2010) we have 52 students interning.
• Library donations made to three schools in June 2009.

• Continued support extended to Hinopak Community Health Centre through monthly provision of medicines and refurbishment of
medical equipment. 1,508 patients seen during the period June 2009 ~ May 2010.

• Hinopak declared a "ghutka/betel nut-free zone" in November 2009. Monitoring and implementation ensured through our Health
and Safety Section and CBA representatives. (Ghutka and betel nuts are chewable substances causing oral cancer very common in
Pakistan.)
• Potable as well as gardening water provided to SITE Model School.

• We continued in promoting a sporting spirit in the community by sponsoring the "4th Golf Tournament" in 2009 in addition to the
cricket and hockey sponsorships in the past years.
• Trainings provided to public/Hinopak stakeholders from June 2009 to May 2010: Drivers Safety Training, Technicians Training, Eco
Driving, Fuel Saving Seminar, Motor Vehicle Training: 232 sessions producing 3,268 participants.
• Additional Mobile Field Training Units increased participations, from 314 participants by year-end of last year to 2,477 this year-end.

• 2,788 drivers were trained by our Product Support's Training Section, more than double 2008's which was 1,211.

• Other company donations passing through our Marketing Department in cash/kind extended to 78 organizations during the 9-month
period June 2009 to March 2010.

Road Safety Campaigns • We share our parent company's slogan "concern beyond cars." Our stakeholders benefit from our Road Safety Campaign through
Safe Driving and Econo-Drive programs conducted through our internal resources and Pakistan's Highway Patrol in June 2009.

• About 75 Hinopak fleet and plant drivers participated in the Safe Driving conducted by the National Highway Authority in June 2009.

Personal Social Responsibility • Employees donated their one day salary for one worker's wedding.

• Concerned Hinopak employees and family members as well as SITE Model School students and teachers (est. 120) scheduled to
clean up a turtle sanctuary in June 2010 to preserve their natural habitat in a Karachi beach.
• A group of employees pooled resources together for tree sapling purchase and plantation and cleaning of surrounding areas.

• Some employees head or are members of local/international clubs for the pursuit of community welfare and development.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010

Principle 2 Business should ensure that they are not complicit with human rights abuses.
Commitment Policies, Systems, Processes and Actions Performance
Programs

Hinopak is committed to Code of Conduct Code of Conduct Adherence • Employee commitment to the Code was sought through handwritten signatures 2007 and email confirmation in 2008. Similar
avoiding complicity of activity to be undertaken this year.
human rights abuses in all
• Complaints (contravention to the Code) were monitored/tracked by our Whistle Blowing Committee. Countermeasures/action
its areas of operation.
accordingly given/done.
• Suggestion boxes available at conspicuous areas provided convenience in forwarding complaints/suggestions. Open working
environment at Hinopak gives the spirit of freedom (of expression).
• We follow the requirements of Standing Orders (Ordinance) 1968.

Credo, Mission, Values, • We support Hino's Credo incorporating the Mission of "making this world a better place to live in" through social contribution and
Practice concern for all stakeholders including compliance with all laws.
• The value of "integrity" as embedded in the Hino Spirit principles followed by all Hino affiliates worldwide was highlighted in three
Hino Spirit training sessions provided in the period June 2009 ~ May 2010. 37 new employees were reminded to practice principle-
centered leadership, to respect all individuals and avoid any type of human rights abuse.

Employees Equal Opportunity Provision • Female employees are given equal opportunity in all aspects of employment including training, promotion, and other benefits.
Female engineers can be found in our plant, previously unheard of in this culture.
• Aside from signing and communicating the Gender Equality Policy and Process Guidelines (developed by the Employers' Federation
of Pakistan in conjunction with ILO) in December 2008, we are now looking into communication and implementation of 'Protection
Against Harassment of Women at Workplace Act 2010' recently announced by the government.
• Equitable career paths and growth opportunities are available for female employees.

• We practice the principle of "diversity" as one of the Hino Spirit values embed in areas like recruitment, vendor / supplier pre-
qualification, promotion, etc. Recognizing the importance of and respecting through this diversity motto was again encouraged
through three Hino Spirit sessions in the period June 2009 ~ May 2010.

External Public Consumer Protection • We follow laws of the land, Pakistan's and other countries'. We ensure that foreign laws and regulations are absolutely referred to in
our local and export product development, ensuring public right to safety and health.

• Quality audits (sometimes aided by Japanese experts) routinely performed. A total of 545 audits of vehicles produced from June
2009 to-date ensure that our products conform to quality and safety standards keeping our consumers/customers' rights in mind.
The audits resulted to an overall improvement by 8.95%.

Vendor/Supplier Pre- • Hinopak vendors' / suppliers' premises and operations are checked/inspected before they are inducted as business partners. Non-
qualification and Human Rights complicity to human rights abuses is incorporated in our Initial Vendor Evaluation Report where safety of workers, working
Observation conditions, labor-management relations, among others things, are included.

• Vendors/suppliers are encouraged to be certified in international management standards and likewise follow laws and conventions
pertaining to human rights.
• Encouragement to vendors in observing rights of employees have resulted to improvements in working conditions (Welding areas)
and safety (use of PPEs.)
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 3
Commitment
We uphold freedom of
association and the right of
workers to collective
bargaining.
Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Policies, Systems, Processes and
Programs
Industrial & Employee Relations
External Relations
Actions
Freedom of Association
Collective Bargaining as a Tool
for Addressing Working
Conditions, Terms and
Employment and Relations
Labor Laws as Point of
Reference
Labor-Management Relations
Engagement / Participation
Engagement
Performance
• Hinopak has been very compliant with the Industrial Relations Act (IRA) 2008 and has began looking into the requirements of the
recently-announced IRA 2010, both allowing employees to join any trade union of their choice.
• Hinopak workers represented by a registered Labor Union, Hinopak Motors Employees Union, existing since the company's pre-
Japanese ownership from 1969. Current membership to-date is 184, representing as Collective Bargaining Agent.
• Union members elect their officers/executive body every two years; officers are given leave for participations in union activities,
trainings or workshops. Latest election held on 31st May 2010, with the management providing logistical support.
• As soon as required by the IRA 2008, five Worker-Management Participation Committees that include the Collective Bargaining
Agent (CBA) to address issues pertinent to workers' terms of employment, working conditions, etc. were established.
• 12th collective bargaining agreement was successfully signed in February 2010, enhancing workers' benefits and promising
cooperation from them in terms of productivity, quality, housekeeping, etc.
• Hinopak ensures reference to labor laws relating to workers- IRA 2008 and Standing Ordinance 1968, such as freedom of
association, including issues including but not limited to disciplinary action and termination.
• Workers' and Union activities likewise reflect labor law requirements; mutual understanding and compliance resulting to a
harmonious labor-management relationship.
• Hinopak labor-management relations at Hinopak is exemplary; this harmonious relationship is based on mutual trust, respect and
transparency.
• The "2008 Excellence Award in Industrial Relations" award received from Employers' Federation of Pakistan in 14th January 2009
speaks volumes about our healthy industrial relations.
• No strike or cessation in work or loss of work hours due to strike or lockout in Hinopak history.
• Workers' active engagement in company affairs/operations has resulted to increased productivity and raised morale. Major thrusts
of union participation include meeting production targets, productivity improvement, skill development, wastage control, education
of workers, Kaizen, 5-S, health and safety.
• Workers / CBA officers permitted to attend trainings both locally and internationally either through the company or through the
Trade Union Federation.
• Hinopak Union organizes and conducts trainings for workers from time to time.
• Hinopak workers actively participate in workers' related issues, like the Pakistan Workers' Federation rally for workers' rights on
December 15, 2009.
• Union officers/members active in initiating/supporting Hinopak donation campaigns for various causes. In this reporting period,
workers made personal donation (1 day salary deduction) for the death of one co-worker.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 4
Commitment
We are committed to the
elimination of all forms of
forced or compulsory labor
in all areas of our or
business partners'
operations.
Principle 5
Commitment
We prohibit engagement in
any form of child labor in
all areas of our or our
business partners'
operations.
Business should support the elimination of all forms of forced and compulsory labor.
Policies, Systems, Processes and
Programs
Employees
Contractors/Business Partners
Business should support the effectively abolition of child labor.
Policies, Systems, Processes and
Programs
Employees
Business Partners / External Public
Actions
Terms and Conditions of
Service, Voluntary Nature of
Employment, Freedom to Leave
Wage Regulations
Assessment & Contract
Actions
Underage Hiring Prevention
Process
Vendor / Contractor Evaluation
and Engagement
Youth Development
Performance
• Sufficient time is given to candidates before accepting our written job offer; employment contracts routinely checked to ensure they
do not violate any human rights or labor law violations.
• Notice period is allowed for termination of employment contract-- generally at 30 days; 90 days for General Manager position-
above.
• Exit interviews are conducted to solicit feedback and make necessary improvements as possible.
• Hinopak workers receive above minimum wage specified by law. Latest directive to increase minimum wage has been looked into;
implementation once notification is received.
• Hinopak vendors/contractors advised to meet minimum wage requirement for their workers/employees.
• We encourage all vendors and contractors to comply with legal requirements relating to their employees' health and safety.
• Forced/compulsory labor part of our initial Vendor Evaluation Report, and contract with them requires that they do not employ the
same.
Performance
• We follow the under-age employment clause of the Factories Act 1934 for our workers and apprentices.
• We acquire and routinely check NIC (National Identity Card) No. of incoming employees/workers/apprentices/interns.
• We have no record of underage employee/apprentice; youngest apprentice on board is 18 years old (minimum age is 14 years old
according to Apprenticeship Rules 1966 (Sindh).
• Non-employment of child labor is ensured/checked through our Internal Vendor Evaluation Report.
• Hinopak employees interacting with vendors/contractors and visiting their premises are to report any observation of engaging child
labor.
• The Technical Training Program (TSC Part-I) for SITE Model School boys along with the scholarships we provided this year are
intended to effectively keep the youth off the workforce.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 6
Commitment
We advocate equal
employment opportunities,
diversity and inclusion in
employment and
occupation and prohibit any
form of discrimination in
employment terms and
conditions.
Business should support the elimination of discrimination in respect of employment and occupation.
Policies, Systems, Processes and Actions Performance
Programs
Employees Workforce Diversity • Our recruitment, selection and hiring processes are inclusive and vocal about giving equal employment opportunities.
• Diversity as a principle espoused by the "Hino Spirit" we follow as Hino affiliate, is being brought to employees' attention through
orientation, trainings and other HR activities. Three sessions conducted this year.
• Workforce profile (including workers) as of 31st May 2010 = 1,478: males 1,458, females 20 comprising of permanent
managers/executives 311, permanent workers 183, apprentices 19, Hino contract workers 178, and contractors' workers 787.
• Low number of female employees is due to our nature of business operations, not systematic exclusion.
• Average workforce age: management permanent 40 years, management contract 32 years, non-management permanent 45 years,
non-management contract 36 years. Overall average age: 37 years (same as last year).
Equal Employment • After adopting and communicating the Gender Equality Policy in December 2008, plan underway for implementation of recently-
Opportunities to Women and announced "Protection Against Harassment of Women at Workplace Act 2010."
Minorities
• Line managers' engagement in providing access to women and minorities while considering our merit-based policy is increasingly
felt. More and more females and considered and inducted for assembly/manufacturing/floor jobs.
• No report of exclusion of minorities in our employment activities.
• Job requirements/specifications do not disadvantage certain groups.
Benefits • Minorities are given extra holidays for observance of their religious holidays/festivals.
• Minorities' food requirements are considered in our daily canteen services.
• Despite company's central location, we provide pick and drop facility to female employees (even internees) in consideration of the
local culture.
• Non-permanent employees also enjoy foreign training, if required. No bond is secured for such opportunity.
• No known grievance/complaint of discrimination with regard to compensation/benefit of females/minorities.
Career Opportunities • Hiring and promotion on merit, performance, qualification and potential.
• Minorities and female employees given the same training opportunities as the rest.
External Public Employment & Internship • Going the extra mile for female candidates and minorities (employment and internship) is one of Hinopak's 'employer of choice'
Opportunities factors.
• We persisted with our Summer and Winter Internship Program to provide professional environment opportunities to
college/university students.
• Apprentices are absorbed in the workforce under merit.
Business Partners' Engagement, • Non-discrimination of employees/workers is included in our Initial Vendor Evaluation Report.
Inclusion and Recognition
• Vendors/Suppliers/Contractors belonging to minority groups are inducted as business partners and given equal rights.
• Contractors' employees (minority group) also extended benefits ('bonus') whenever company's financial conditions allow it.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 7
Commitment
We take precautionary
approach in meeting
environmental challenges
met in all areas of
operations; we are
committed to avoiding and
mitigating negative impact
of all our activities on the
environment.
Business should support a precautionary approach to environmental challenges.
Policies, Systems, Processes and
Programs
Environment Management Systems
Actions
Leadership Guidance
Legal Compliance
Maintenance and Monitoring
Auditing, Certifications and
Awards
Communication, Awareness,
Training
Performance
• As our Environment Management System focus, we adopted Hino Japan's 'Environment Charter' as reference in implementing
SMART objectives, promoting environmental action plan and showing commitment to facing environmental challenges resulting from
business activities.
• Environment and Quality Management Systems Steering Committee and Global Compact/CSR Committee composed of our top
management and Union representative oversee our commitment to environment care and protection, providing leadership and
guidance for all related activities.
• Our Safety, Health and Environment (SHE) Committee was recently restructured to be more effective in taking care of the
implementation of planned environment-related activities.
• We subject ourselves to NEQS (National Environment Quality Standards) under SEPA (Sindh Environment Protection Agency.)
Reports on waste water effluents and air emissions submitted using the SMART software required by the EPA.
• Key parameters (energy consumption, material discard, and water conservation) were reported to Hino Motors, Japan on monthly
basis.
• Compliance in all aspects have ensured a clean, green record (no warnings, no penalties) for Hinopak. Water release and air release
were both within compliance levels.
• Environmental Impact Assessment program is in place, ensuring alignment with procedures for identifying, recording and mitigating
the environmental impacts of Hinopak operations.
• Monitoring of gas emissions from our equipment and machinery as well as our vehicles - products and fleet vehicles, paint booths,
etc.
• Two internal audits conducted in 2009~2010; appropriate countermeasures taken against 20 minor observations/non-conformities.
• Last surveillance audit conducted on October 13, 2009.
• Re-certification in ISO 14001:2004 received in December 2008, surveillance audit due September 2009 and recertification in
December 2009.
• We participated in last year's ACCA-WWF Pakistan Environmental Reporting Award for Best Environmental & Social Report Award in
Multinational Category, jointly organized by the Association of Chartered Certified Accountants and World Wildlife Fund. (Award won
in 2008.)
• Various EMS-related trainings were conducted as follows: ISO 14001:2004 Awareness Program (40 participants), Internal Audit
Refresher Training (6 participants), and Shop-wise Chemical Handling, Storage & Disposal Training (118 participants).
• Various banners and posters on environmental awareness displayed in both plants to celebrate Environment Month 2010.
• Water conservation activity books circulated among employees' children.
• Hinopak Environmental and Social Report 2008~2009 published and shared with the public.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 8
Commitment
Guided by our mission and
social responsibility
principles, we are
committed to promoting
environmentally
responsible thinking within
the Hinopak family, marked
by sincere demonstration
of better environmental-
friendly practices. We
strive to increase our
sphere of influence beyond
our company by including
all other stakeholders and
ensure greater positive
impact.
Business should undertake initiatives to promote greater environmental responsibility.
Policies, Systems, Processes and
Programs
Environmental Responsibility Guidelines
Environmental Initiatives at Hinopak
Actions
Hino Credo - Corporate Mission,
CSR Chapter, Hino Spirit
Hinopak Mission
Hinopak Code of Conduct
Mottainai
Stop Global Warming
Pollution Prevention
Energy/Water Conservation:
Reduce, Reuse, Recycle
Performance
• Hino Motors' mission statement explicitly indicates environmental responsibility: "To make the world a better place to live in by
helping people and goods get where they need to go- safely, economically and with environmental responsibility- while focusing on
sustainable development."
• Hino's CSR Chapter reiterates this commitment… "we strive to provide products that are safe and environmentally-friendly, pursuing
a responsible balance with the environment in all of our corporate objectives."
• Hino Spirit enjoins all employees to practice the "Spirit of Altruism" or "Contribution" - for employees to "work for the benefit of your
customers and society as a whole, be consistently aware of your responsibility in the local and global community, protect the
environment for future generations."
• The mission of Hinopak Motors Limited is reflective of our mother company's mission, "to provide the society with safe, economical,
comfortable and environment-friendly means of transportation by manufacturing and supplying commercial vehicles and services."
• Principle 1 of our Code of Conduct calls for developing and providing outstanding products and services, with sufficient attention to
safety and environment, and Principle 4 that calls for environmental preservation activity as an integral part of our business, are
recognized and adopted by our employees.
• This catchy Japanese word, our environmental motto, unites all Hino employees worldwide in the spirit of environmental
preservation and cost reduction by simple measures.
• Our "Stop Global Warming" motto remained and against our target in Assembly Operation Plant, with our CO2 emissions reduced
40.1% compared with our baseline year (2006) and 7.9% compared with 2009. In our Body Operation Plant, improvement by 4.8%
was witnessed compared with 2009 and 26.8% compared with the 2006.
• Air conditioners constantly maintained; office temperature standardized at 28C.
• Equipment and machineries constantly checked/maintained to ensure efficiency.
• Anti-pollution drive means controlling our wastes. Material discarded (in kg/unit) from 2006 to the current year in our Assembly
Operation Plant drastically improved by 42% while at Body Operation Plant, only by 2.5% from the same baseline year.
• Effluents from various operations like paint, chemicals, human wastes, etc. treated and disposed off properly.
• Segregation of solid wastes strictly followed; items reused/recycled wherever possible.
• Participation and winning in the Horticultural Society of Pakistan's 59th Flower Competition held in February 2010.
• Company-wide cleaning / garbage removal activities in June 2009 participated by 700 employees collected 2.1 tons of waste, while
the other we initiated with our 'adopted' school resulted to disposal of 22 kilograms of school trash.
• World Water Day was celebrated at Hinopak on March 22 & 24, 2010 through an awareness program in collaboration with the
country's premier hospital (Aga Khan University Hospital) whose doctor spoke on "Water-borne Diseases" in both our plants.
• To promote energy conservation activities in the company, Energy Saving Guideline was circulated among employees by the EMR
(Environment Management Representative) Office .
• Lights are turned off before office hours, during breaks/while leaving the room. Use of sunlight while cleaning also directed.
• Constant checking and rectification of air pipes to avoid leakages.
• Appliances/equipment unplugged after use and not left on stand-by.
• Use of fresh air or fans encouraged; whenever/wherever possible, air conditioners to be turned off.
• Plant effluents converted into gardening water through our Waste Water Treatment plants
• As water conservation initiative, our water consumption level decreased by 5.5% against last year in Assembly Operation Plant and
slightly better in our Body Operation Plant at 6.4% against last year.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010

Principle 8 Business should undertake initiatives to promote greater environmental responsibility.

Commitment Policies, Systems, Processes and Actions Performance
Programs

Employee Sensitization
• World Environment Day celebrated in Hinopak on June 4, 2010 through a symbolic tree planting ceremony; top management
members all planted trees to mark the occasion.
• Environment care/protection awareness of employees through literatures/pamphlets/posters/banners witnessed in both Environment
Month/Day activities in June 2009 and June 2010.
• Hinopak in collaboration with UNGC Local Pakistan Network initiated a "Climate Change Awareness" walk participated by around 500
students, teachers, employees, SITE Industrial Area company representatives, members of media, etc., on October 19, 2009.

• Environment Month participated by Hinopak as Hino affiliate. We are guided by Hino President's Environmental Message 2010
carrying four main points for a cleaner cities and beautiful earth to the next generation: "reduce environmental burden of product
life cycle (from developing to scrapping), develop fuel-efficient products which maintain clean air, produce at factories which
discharge less environmental pollution, and, suggest optimum driving as well as providing comfortable products." These messages
were translated in Urdu.
• Environmental Message 2010 from our MD reiterated company's pledge for more commitment in energy preservation/ conservation,
material discard and water consumption; that they should be taken into account in all aspects of our production processes.

• Employees boosted schoolchildren's Environment Day participation by viewing and appreciating students' exhibits at Hinopak.

• Hinopak set June 19, 2010 as a 'turtle watch' activity in the Sandspit area of Karachi, a natural habitat for turtles endemic in the
area. The activity is preceded by a presentation/video on environmental impact/improvement of doing so and participated by
employees and student, their family members and /teachers of SITE Model School.

Environmental Initiatives with External Pollution Prevention, Energy • SITE Model school students joined Hinopak employees in clean-up activities in June 2009.
Stakeholders Conservation
• Employees advised to involve family members in simple energy conservation practices like switching off lights when not in use,
turning off tap water while brushing teeth, reducing shower time, keeping the food at room temperature before heating, etc.

• 301 vehicles were serviced for free in four tune-up camps/camps (June 2009~June 2010) that taught drivers/customers how to
ensure proper vehicle usage and maintenance resulting to cleaner air from more clean air-emitting, fuel-efficient vehicles.

• 200 trees planted in various locations in Karachi in June 2009. June 2010 saw to lesser number, but within the company premises.

Sensitization / Awareness • Attention to environment highlighted in our promotion and advertisement drives for CNG bus and High-power Dutro to sensitize
Campaign customers/end-users and public in general to the linkage between our products and environment responsibility.

• We sponsored a Climate Change Awareness slogan competition participated by 121 students. (Winning) slogans were used as
communication material in climate change awareness walk we initiated in October 2009.
• Hinopak's Environment Day (June 5, 2009 and June 9, 2010) celebrations participated by three schools showcasing their awareness
of the environment through poster exhibitions/competition. 200 and 270 students/teachers/visitors participated in 2009 and 2010,
respectively. This year's (2010) theme, "Many Species, 1 Planet, 1 Future" based on biodiversity follows UNEP theme.

• An estimated 120 students came to Hinopak on 28th May 2010 for a presentation/briefing on protecting the Karachi turtle sanctuary
through the Sind Wild Life Foundation. Linkage between the turtle's protection vis-à-vis biodiversity/ecosystem was highlighted.

• Learning by experience through a beach cleaning activity following the abovementioned point (briefing/sensitization) for SITE Model
School students scheduled on 19th June 2010 at Sandspit area/beach, Karachi.
• Around 200 Hinopak employees' children who visited the company in December 2009 were requested to participate in environment
care by showing the Waste Water treatment plant and its impact to the environment.

• Estimated 150 employees' children expected from 14th~16th June 2010 for a 'mini summer camp'/plant visit will be shown an
environmental movie, given environment care literatures and shown the waste water treatment plants.
• 3,268 customers/end-users/drivers/technicians and general public (participants of our Motor Vehicle Training Program, Mobile Field
Training Unit & Training Centre) were also sensitized on the importance of vehicle maintenance and its positive impact to the
environment during this reporting period.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010

Principle 9 Business should encourage the development and diffusion of environmentally friendly technologies.
Commitment Policies, Systems, Processes and Actions Performance
Programs

We are committed to the Environment-friendly Technology Manufacturing Vehicles that • Hinopak introduced the first locally-manufactured CNG bus in the country and has secured repeat orders for satisfactory
adoption of environment- Burn Cleaner Fuels and Emit performance.
friendly technologies that Less Fuel
• Euro-II engine technology fitted in some Hino products, despite the absence of local regulations on the same mainly because of
reduce environment impact
from our products and day- absence of clean fuel.
to-day operations. We
Testing and Development • We strictly follow Hino's green product development procedures.
ensure effective
environment risk • All products undergo smoke belch tests to ensure quality of emission.
management and
compliance across all our Use of Environment-Friendly • Use of environment-friendly gas R-134a & R-404a for air conditioning of buses & refrigeration of trucks is ensured.
business activities, from Parts / Raw Material
product • We monitored and reduced use of diesel in our generator sets and other machinery used for production processes.
design/development to
product sale. • Quality of fuel, lubricants & other components are being checked by standard specification.

Environmental-friendly • Production/Manufacturing processes reviewed regularly.

Processes
• For proper maintenance of vehicles, Hinopak provides authorised service stations/workshops.

• Paint sludge, FRP & glass wool incineration are done by third party to reduce hazardous waste.
HINOPAK MOTORS LIMITED
Global Compact - Communication on Progress: June 2009 ~ June 2010
Principle 10
Commitment
We support the anti-
corruption principle and are
committed to continue our
'no-tolerance' policy to any
corruption practice.
Business should work against corruption in all its forms, including extortion and bribery.
Policies, Systems, Processes and
Programs
Ethical Guidelines
Risk Assessment System
HR & Other Processes
Stakeholder Engagement
Actions Performance
UNGC Subscription • Hinopak is very vocal about its UNGC subscription and commitment to all 10 principles. This commitment is communicated through
publications, press releases, presentations, displays, etc.
Hinopak Code of Conduct • Our basic Code of Conduct was recently revisited; being revised to be more comprehensive and explicit. However, Principles 2, 3, 8
and 11 clear on our pledge to work against anti-corruption practices.
• Employees to be approached again this year for their commitment to this Code.
• Orientation of new hires included briefing on basic Code of Conduct.
Hinopak Whistle Blowing • The Whistle Blowing Committee (WBC), leading in the oversight of our anti-corruption commitment, met quarterly as minimum
System requirement and monthly as desirable.
• Compared with the same period last year, more employees sent in their suggestions/grievances (69 vs. 7) through the WBC and/or
suggestion box. Accordingly, our MD/Chairman WBC addressed our employees' concerns.
Hino Credo, Mission, CSR • "Trust" was invoked twice in the Hino Credo containing overall company mission, core principle and CSR charter, where complying
Charter with laws and regulations and maintaining high ethical standards is a major focus.
Hino Spirit • Hino Spirit principle on "Sincerity, the Value of Integrity" contains guidelines that employees follow in respect of anti-corruption.
• Three sessions to brief new employees on Hino Spirit principles including 'honesty/sincerity' have so far been conducted from
December 2008~May 2009.
J-SOX • Internal Control Framework guides Hinopak in following the J-SOX (Japan's version of Sarbanes-Oxley Act). Seven internal audits
were conducted within period June 2009 to May 2010.
• Internal controls / value additions were provided in the following areas: rules for dealer incentive calculation, rules for advertising
and sales promo activities, online stationery issuance processing and financial reporting.
• Hinopak's MD/CEO declared compliance with the J-SOX requirements in a report sent to our principal in Japan.
Audit Committee • An independent Audit Committee ensures monitoring of compliance activities. All three members of the Committee are non-
executive directors supported by Internal Audit Department. Four review meetings were held in 2009.
Corporate Governance / • External auditors publicly attested Hinopak's financial reporting integrity as contained in our Annual Report.
Compliances
• Hinopak's MD/CEO publicly affirmed compliance with corporate governance regulations as indicated in our Annual Report for the year
ended March 31, 2010.
• Other compliances: Stock Exchange regulations, International Accounting Standards, International Financial Reporting Standards,
Companies Ordinance 1984 and other taxation laws, etc.
Citations, Awards • Hinopak received 'SAFA Best Presented Accounts Award' (November 2009, Dhaka, Bangladesh) for transparent reporting and
adequate disclosures in financial statement.
• Hinopak received 'Best Corporate Report Award 2009' for exemplary practices and corporate reporting (from Institute of Chartered
Accountants of Pakistan and Institute of Cost and Management Accountants of Pakistan.)
Process Improvement • HR processes such as payroll, leave application, attendance management were automated to ensure data integrity and avoid manual
errors/tamperings.
• Recruitment and hiring policy is very vocal on transparency and merit; multiple assessments ensured all hirings were done
objectively.
• Personal contact/interaction with Sales Tax personnel eliminated by electronic payment/processing.
• Proposals/quotations from multiple vendors/suppliers sought, reviewed and seen by multiple Hinopak personnel before approval.
Vendor Pre-qualification • Our vendors are subjected to a pre-qualification assessment, the Initial Vendor Evaluation Report, before they inducted as business
partners.
Public Sensitization, • Corporate Social Responsibility initiatives and UNGC principles shared with public (students, visitors, etc.) sensitizing them about the
Partnerships subject. Hinopak hosted three local Global Compact 'Business Talk CSR' (19th, 20th & 23rd) during this reporting period.
• Hinopak visitors were routinely briefed about the company's Global Compact/CSR commitment and initiatives.